The chief executive of the $40 billion fund says that bringing back defined benefit funds could make the public service an attractive career path again and strengthen the social compact with nurses, teachers and police.
The set-up for emerging markets is better than ever, and harks back to the beginning of their decade-long run following the end of the Asian financial crisis. And while Trump has investors running scared, fears about another brushfire trade war are overblown.
High level of advisors’ clients at risk of leaving
About 30 per cent of investors who use a financial advisor are at risk of leaving their current advisor, according to a report by research firm CoreData. Most of the ‘at risk’ clients had little or no recent contact with their advisors.
The report was based on a survey of 1,525 advised and unadvised consumers over age 18.
CoreData says: “Many Australian advisors are making the fundamental mistake of not keeping in regular contact with their clients. Markedly improving client retention is as simple as picking up the phone, and scheduling in a meeting, but we see that many advisers, especially those with high proportions of clients who are in danger of leaving are failing to do this.
“For advisors who are complacent enough to think that client longevity guarantees an ongoing relationship, think again – close to one third of those classified ‘at risk’ have been using their current advisor for the past 10 years.
“Money plays different roles for different segments in terms of motivating people to switch advisers, with more than two in three ‘bonded’ respondents saying they would not switch advisers if they were offered the same service for less money. In contrast, one quarter of those ‘at risk’ would move straight away.
“Advisors need to promote themselves not only as being knowledgeable but most importantly, they and their businesses as being trustworthy and personable in order to retain clients and to grow their client base with the disillusioned clients from rival advisers.
“Trust is not only the key ingredient in developing bonded clients but is also the key switching driver for ‘Loose’ and ‘At Risk’ respondents – 44.4 per cent of those ‘at risk’ and one third say they would switch for an advisor they could trust. Honing up on interpersonal skills may also be useful for advisers, with close to two in five ‘at risk’ respondents and almost one quarter of ‘loose’ ones saying they would switch for an advisor that they could better personally deal with.”
